Saving the economy

November 08, 2012

The election is over. President Obama says he wants to work with Republicans, who say they want to work with him. Here are some modest steps they can take to demonstrate their willingness to buck their contributors for the sake of the country.

Prescription drugs in the Medicare program Eliminate the Republican inspired prohibition on Medicare negotiating prices with the drug companies.This is an indefensible nod to the drug companies in a program that is going bankrupt. The Veteran's Administration is under no such restriction, and reportedly pays as much as 40 percent less than Medicare for some of the same drugs.

Prevailing wage on public infrastructure projects Federal spending on public infrastructure projects is burdened with the Democratic inspired limitation that workers be paid the prevailing wage. The current prevailing wage for a union carpenter in Cook County approximates $66 an hour (base wage and contributions for insurance and pension). Like the Medicare restriction, this is an indefensible nod to a favored constituency, construction unions. We need more jobs and improved infrastructure. A simple and fair solution would be to suspend the limitation and reduce the prevailing wage figure by 25 percent.

Tax rates Eliminate the former President George W. Bush tax cuts for those making over, say $500,000, effective at the beginning of 2013, and for all other taxpayers effective at the beginning of 2015. Neither party would like this proposal, the chief virtue of which would make everyone shoulder responsibility to right our financial affairs. The deferral for those making under $500,000 would provide time for the economy to improve. Democrats presumably should approve eventual full elimination and return to the tax law prevailing during the halcyon years of the Clinton administration.

Let's stop the posing and posturing. Act for the good of the country, not your favored constituencies and political fortunes.